Profile: First Marblehead Corp (FMD)
28 Jul 2016
The First Marblehead Corporation, incorporated on August, 30, 1994, is a finance company. The Company is focused on education financing marketplace in the United States. The Company provides loan programs on behalf of its lender clients for undergraduate and graduate students and for college graduates seeking to refinance private education loan obligations. The Company offers a suite of services through its Monogram loan product service platform. The Company partners with lenders to design and administer education loan programs through its Monogram platform, which are typically school-certified. These programs are designed to be marketed through educational institutions or to prospective borrowers and their families directly and to generate portfolios intended to be held by the originating lender or financed in the capital markets. In addition, the Company offers other services on a stand-alone fee-for-service basis in support of its clients, including tuition management, loan processing and disbursement, loan origination, portfolio management and securitization services.
The Monogram platform integrates the Company’s program design, marketing support, loan origination and portfolio management service offerings. It enables lenders to offer consumers education loans with competitive terms and clear pricing alternatives, with product options based on the credit profiles of qualified applicants. Specifically, a lender can customize the range of loan terms offered to their qualified applicants, such as repayment options, repayment terms and borrower pricing. The product and service offered are focused on the following three principal revenue lines which include partnered lending, fee-for-service and capital markets.
The Company provides customized Monogram-based education loan programs for lenders who wish to hold originated portfolios to maturity. The Company may provide credit enhancements by funding participation interest accounts to serve as a first loss reserve for defaulted program loans. In consideration for funding participation accounts, the Company is entitled to receive a share of the interest income generated on the loans. The Company receives revenue for origination and marketing services at the time approved education loans and receive monthly payments for portfolio management services, credit enhancement and administrative services throughout the life of the loan.
Loan origination, portfolio management, analytical and structuring services and tuition management services are each available on a stand-alone, fee-for-service basis. The Company offers outsourced tuition planning, tuition billing, refund management and payment technology services for universities, colleges and secondary schools through the Company’s subsidiary Tuition Management Systems, LLC (TMS). TMS provides such services on behalf of over 700 educational institutions.
The capital markets experience coupled with the Company’s loan performance database and risk analytics capabilities provide specialized insight into funding options available to its lender clients. In addition to traditional asset-backed securitizations, funding options may also include whole loan sales or other financing alternatives.
The Company competes with SLM Corporation, Wells Fargo & Company, Discover Financial Services, Nelnet Business Solutions, TouchNet Information Systems, Inc. and Higher One Holdings, Inc.
First Marblehead Corp
1 Cabot Rd Ste 200
MEDFORD MA 02155-5117